A Comparative Analysis between Shariah Audit and Shariah Review in Islamic Banks in Malaysia: Practitioners’ Perspective

Yasoa, Mohd Rushdan; Abdullah, Wan Amalina Wan; Endut, Wan Anisah

doi:10.21834/ebpj.v5i14.2208

Cited by 5 publications

(10 citation statements)

References 4 publications

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“…In Malaysia, Yasoa et al (2020b) argued that Shariah review and SA have apparent differences and play their roles as a second and third line of defense, respectively, which could eventually provide a stimulus Shariah governance and strengthen market confidence. Shariah auditors need to look at the internal control elements of whether effective and efficient enough to alleviate any possible Shariah breaches.…”

Section: Resultsmentioning

confidence: 99%

“…Certain skills, knowledge and characteristics added with years of experience in the field are prerequisites to becoming competent Shariah auditors. Hence, for qualified Shariah auditors, Shariah knowledge is the essential knowledge component, followed by knowledge of Islamic banking operation and knowledge of Fiqh Muamalat (Ali and Kasim, 2019; Mohd Ali et al , 2018; Yasoa et al , 2020b).…”

Section: Resultsmentioning

confidence: 99%

“…In Table 3, the investigation showed that the empirical quantitative approach was the most applied methodology in the sample studies with 19 articles (Ab Ghani and Abdul Rahman, 2015; Ahmed and Sarea, 2019), while the studies that used the qualitative approach were less with 14 studies (Alam et al , 2020; Khalid et al , 2018b). Thesis studies have discussed a variety of topics such as external SA and review committee (Alam et al , 2020), competency of SA (Mohd Ali et al , 2020) and role of Shariah auditor (Yasoa et al , 2020b), to mention some. The qualitative approach helps to understand how and why things occur.…”

Section: Resultsmentioning

confidence: 99%

“…Furthermore, Shariah auditors must assess if the internal control mechanisms are effective and efficient enough to prevent potential Shariah violations. They are also responsible for examining various contracts, product structures, transaction reporting and the preparation of financial statements, reports, marketing circulars and any other legal documents pertinent to IFI operations (Othman and Ameer, 2015; Yasoa et al , 2020b).…”

Section: Thematical Analysismentioning

confidence: 99%

“…Given that the internal audit teams may not be able to comprehend the complexity and intricacies inherent to IFIs’ audit environment if they lack the necessary knowledge, skills and other attributes in the Islamic banking context (Yasoa et al , 2020b), Shariah auditor is a dedicated audit team that complements the audit performed by the internal auditors. Therefore, the interaction between internal audit, external audit, board of directors and others should not be neglected on understanding the effectiveness of Shariah auditing practices.…”

Section: Thematical Analysismentioning

confidence: 99%

See 4 more Smart Citations

Shariah auditing: analyzing the past to prepare for the future

Khatib

Abdullah

Amosh

et al. 2022

JIABR

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Purpose This study aims to present a detailed investigation of Shariah audit research based on a systematic literature review. Design/methodology/approach A total of 53 studies were collected from the Scopus and Web of Science databases following a systematic methodology. These studies were analyzed and evaluated based on the theoretical perspective, geographical distribution, research settings and themes background. Findings The findings indicate an increase in the literature on Shariah auditing over time, especially in the Malaysian context, with a dearth of research in other contexts and institutions (Takaful). It has been also revealed that the existing literature is still unclear about the effectiveness and consequences of effective Shariah auditing, pointing the need for more work on these areas. The authors outline opportunities for future Shariah auditing research. Originality/value The synthesized findings are helpful for policymakers and managers to understand better how research in Shariah auditing is developing and how to translate research findings into practice. To the best of the authors’ knowledge, this is the first research to comprehensively synthesize the literature on this topic and identify the potential opportunities for future research directions.

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Section: Resultsmentioning

confidence: 99%

Section: Resultsmentioning

confidence: 99%

Section: Resultsmentioning

confidence: 99%

Section: Thematical Analysismentioning

confidence: 99%

Section: Thematical Analysismentioning

confidence: 99%

See 3 more Smart Citations

Shariah auditing: analyzing the past to prepare for the future

Khatib

Abdullah

Amosh

et al. 2022

JIABR

View full text Add to dashboard Cite

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Measuring Good Governance for Islamic Financial Institutions for Achieving Islamic Social Finance Objectives: The Need for Shariah Governance Index

Nazmi¹,

Hassan²,

Rahman³

2022

Towards a Post-Covid Global Financial System

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Determinants of effective Shariah compliance auditing in Palestine: a theoretical and conceptual analysis

Faza',

Badwan,

Hamdan

2023

JMLC

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Purpose This study aims to conduct a review and analysis of the literature on Shariah audit compliance by examining the difference between internal and external auditors, the scope of internal Shariah audits and the qualification of Shariah auditors. Design/methodology/approach The current study used content analysis and the descriptive approach to achieve the main objective of the study. To ensure that Islamic Financial Institutions’ (IFIs) practices preserve Shariah principles and values when providing Shariah-compliant products and services, this audit will be used to supervise and monitor the operations of IFIs. The main goal of Shariah compliance auditing is to protect the interests of IFIs stakeholders, including account holders, shareholders, creditors, management and employees, as well as the general public while ensuring that the mechanisms of checks and balances in place are appropriate and tailored to the goals and missions of its establishment following the Maqasid Al-Shariah. Findings The findings of this study attempt to contribute to the body of knowledge surrounding Shariah audit compliance by advising IFIs on the value of Shariah compliance auditing in addressing the needs of its stakeholders. As a result, the benefits of Shariah compliance audits will be maximized, and future legislative changes will be implemented to reduce or completely remove the risk of Shariah’s failure to comply. Practical implications This research advises IFIs on the usefulness of Shariah compliance auditing in addressing the demands of its stakeholders to add to the body of knowledge on Shariah audit compliance. Moreover, all parties involved to take action to reduce the gap that will significantly affect stakeholders’ confidence, particularly concerning the Shariah compliance of the IFIs’ products and services on their operations and activities. Originality/value The advantages of Shariah compliance audits will thus be maximized, and future regulatory improvements will be made to lessen or eliminate the danger of Shariah noncompliance.

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A Comparative Analysis between Shariah Audit and Shariah Review in Islamic Banks in Malaysia: Practitioners’ Perspective

Cited by 5 publications

References 4 publications

Shariah auditing: analyzing the past to prepare for the future

Shariah auditing: analyzing the past to prepare for the future

Measuring Good Governance for Islamic Financial Institutions for Achieving Islamic Social Finance Objectives: The Need for Shariah Governance Index

Determinants of effective Shariah compliance auditing in Palestine: a theoretical and conceptual analysis

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